Bitcoin Rises To 23k As Miner Sales See Multi-Year Low

Bitcoin

Bitcoin continued its bullishness as it raised its price above the USD$23,000 level, a positive sign among miners who have reduced sales of their mined coins. Flows on a chain Flags by Bitifinex analysts indicate that the amount of Bitcoin moved from Bitcoin mining addresses to wallets owned by cryptocurrency exchanges has decreased to multi-year lows.

Bitcoin transfer volume from miners to exchanges. | Source: Bitcoin Archive

Low Selling Power, Favorable For BTC Rally

According to Bitfinex analysts, Bitcoin miner sales are at a three-year low. The report claims that the sell-off could be a sign that Bitcoin miners are in the mood to accumulate coins in anticipation of the rise in prices of the flagship cryptocurrency.

Reduced Bitcoin sales from mining companies means low selling pressure from these market players. Thus, it indicates bullishness for the broader market.

However, the analysts said that the recent rise in the price of Bitcoin could see a correction as investors try to recoup their profits amid the current price hikes.

The analysts identified large wallet sizes (>$1M) as the ones most responsible for accumulating Bitcoin. They also said that such wallets, as well as major market players, are the ones creating the buying pressure that comes after the FTX saga and series of bearish events that were generally seen last year.

The analysts stated that the number of wallets with a value of $1,000 and $10,000 of Bitcoin has increased since the second week of January. The analyst also acknowledged that the upswing was accompanied by trading activities of retail investors.

According to the figure above, the current low Bitcoin selling pressure coincided with the lowest sales in November last year. The current low level signals a green (bullish) indicator for the cryptocurrency.

When miners sold more BTC, it to understand bearish for the value of the coin. Conversely, when mining firms do not have the urge to sell, this indicates a bullish trend for the crypto market.

Bitcoin price today

Bitcoin has risen in value by nearly 40% this month, trading at $22,909, up 1.48% on Tuesday. The crypto is trading at unprecedented levels since the collapse of the FTX exchange. The amount of BTC stands at about $26.82 billion, an increase of 12.78% in the last 24 hours, according to Coinmarketcap.

BTCUSDT price chart on TradingView
BTC price is moving sideways on the 4 hour chart. Source: BTC/USDT in progress TradingView.com

As mentioned above, the rise in the value of Bitcoin could be attributed to whales committed to accumulating coins amid surging prices. The bullish trend is also visible in the global capitalization of the crypto market, which is trading at a higher level, about $1.06 trillion, up 1.27% in the last 24 hours, according to Tradingview.

Featured image from Unsplash, Chart from TradingView.

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